Bursa Malaysia Berhad (Bursa Malaysia) and the Korea Exchange (KRX) announced today the signing of an exclusive agreement for the development of Bursa Malaysia’s Electronic Trading Platform (ETP) for the Malaysian bond market.
The ETP will provide greater efficiency and transparency for the bond market based on a customised version of KRX’s Bond Electronic Trading platform which will include order matching, trade negotiation, trade reporting, surveillance and price dissemination, aimed at improving the liquidity of the secondary bond market. “We have chosen KRX’s bond trading platform because of KRX’s presence in Asia as a leader in the Asian bond market and also its system’s proven efficiency,” said Dato’ Yusli Mohamed Yusoff, Chief Executive Ofiicer of Bursa Malaysia. “We are confident that this arrangement will enhance our capabilities as a market operator, which in turn will benefit all market participants in Malaysia.”
“With the development of the first bond trading system across Korea’s border, KRX expects to initiate more technology-related projects outside Korea. This will tie in with the Korean government’s plans and initiatives to promote Korea as the “Financial Hub of North Asia,” said Mr. Young-Tak Lee, Chairman and CEO of Korea Exchange who looks forward to further developing the exchange’s relationship with Bursa Malaysia.
Following this agreement, KRX and Bursa Malaysia intend to collaborate to develop the bond market in the region in addition to working together on financial derivatives products. Upon the successful completion of this project, which is envisaged to complete within 12 months with 60 resources, KRX and it’s IT subsidiary, KOSCOM will commence its plans to venture into the Middle East, Central Asia and South America.
